UltraTech Cement rose 0.41% to Rs 3,156.05 at 9:28 IST on BSE after the company's consolidated net profit rose 1% to Rs 400 crore on 14% growth in revenue to Rs 5835 crore in Q3 December 2014 over Q3 December 2013.
The Q3 result was announced after market hours on Friday, 23 January 2015.
Meanwhile, the S&P BSE Sensex was up 64.80 points or 0.22% at 29,342.05.
On BSE, so far 1,186 shares were traded in the counter as against average daily volume of 17,043 shares in the past one quarter.
The stock hit a high of Rs 3,196.40, also a record high for the stock. The stock hit a low of Rs 3,156.05 so far during the day. The stock had hit a 52-week low of Rs 1,652 on 6 February 2014.
The stock had outperformed the market over the past one month till 23 January 2015, surging 23.77% compared with Sensex's 6.44% rise. The scrip had also outperformed the market in past one quarter, jumping 28.97% as against Sensex's 9.04% rise.
The large-cap cement company has equity capital of Rs 274.40 crore. Face value per share is Rs 10.
The consolidated figures include the financial results of the acquired units in Gujarat of Jaypee Cement Corporation (JCCL) with effect from 12 June 2014. As a result, figures for Q3 December 2014 are strictly not comparable with the corresponding previous year period.
UltraTech Cement's earnings before interest, taxation, depreciation, and amortization (EBITDA) rose 14% to Rs 1058 crore in Q3 December 2014 over Q3 December 2013. EBITDA margin was at 18.1% in Q3 December 2014, unchanged from Q3 December 2013.
The company's finance costs jumped 64% to Rs 164 crore in Q3 December 2014 over Q3 December 2013. Depreciation and amortization rose 3% to Rs 296 crore in Q3 December 2014 over Q3 December 2013. The increase in finance costs and depreciation and amortization was attributed to the acquisition of Gujarat units and commissioning of new capacities.
On a sequential basis, prices witnessed a downward trend in Q3 December 2014, UltraTech Cement said. However, the on-going cost optimisation measures helped in containing costs despite the continuing increase in price of input material and logistics cost, the company said in a statement.
UltraTech Cement said that the business outlook continues to remain challenging. Growth in cement demand in India is likely to be around 8% over the long term, the company said. The key demand drivers will continue to be housing and infrastructure spends, it added.
At the time of announcement of the third quarter results, UltraTech Cement said that its board of directors has approved signing of the definitive agreement with Jaiprakash Associates (JAL) for the acquisition of JAL's cement units located at Bela and Sidhi in Madhya Pradesh, having a capacity of 4.9 million tonnes per annum together with 180 megawatts (MW) captive thermal power plants. Earlier on 23 December 2014, the company's board had approved the proposal for the acquisition of the cement units of JAL located at Bela and Sidhi in Madhya Pradesh. UltraTech Cement will issue non-convertible debentures worth Rs 4538 crore and non-convertible cumulative redeemable preference shares worth Rs 10 lakh to JAL for the acquisition. UltraTech Cement will also take over JAL's debt of Rs 626.50 crore and negative working capital of Rs 160.50 crore. It is anticipated that the transaction will close in 7 to 9 months, UltraTech Cement said.
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